Judge OK’s Extension for Tribune Reorganization

(CN) – A U.S. bankruptcy judge on Thursday gave the Tribune Co., owner of the Los Angeles Times, until the end of March to negotiate with creditors who have filed $13 billion in claims against the media conglomerate.

The month extension in the Chapter 11 bankruptcy gives the media conglomerate more time to try to file a reorganization plan. Chief Judge Kevin Carey in Delaware also postponed until April 13 consideration of a motion to bring a “fraudulent conveyance” complaint over the company’s leveraged buyout by real estate tycoon Sam Zell, the Chicago Tribune reported. Carey will also wait until mid-April to hear a motion by bondholders who want an examiner appointed to investigate the December 2007 buyout. The holders of $1.2 billion in subordinated debt called the buyout a “strange cure for the adverse business environment for media companies,” as it added $9 billion to Tribune’s debt. The Tribune Co. owns 23 televisions stations and several daily newspapers, including the Los Angeles Times, the Chicago Tribune and The Baltimore Sun.